Fed’s Stress Tests Bolster Case for Easing Bank Rules

WASHINGTON—The largest U.S. banks survived a hypothetical “stress test” and could continue lending even during a deep recession, the Federal Reserve said, a strong report card that could bolster the industry’s case for cutting back regulation.

In the first part of its annual tests, the Fed on Thursday said 34 of the largest U.S. banks have significantly improved their defenses since the 2008 financial crisis. The results signal that…